Economic news

Barclays forecasts Fed to stand pat on rates in January

2023.11.22 02:14


© Reuters. FILE PHOTO: An eagle tops the U.S. Federal Reserve building’s facade in Washington, July 31, 2013. REUTERS/Jonathan Ernst

By Subhadeep Chakravarty

(Reuters) -Barclays said on Wednesday it no longer expects the U.S. Federal Reserve to raise interest rates in January, compared with an earlier forecast of a 25-basis-point hike.

Rates will remain unchanged until December next year, the brokerage said.

The brokerage expects the U.S. central bank to start trimming rates by 25 bps every other meeting after the end of next year, and that would bring the Fed funds’ target range to 5.00%-5.25% at the end of 2024 and at 4.00%-4.25% by 2025-end.

“We continue to think, however, that risks are tilted to the upside, with rate hikes likely in 2024, if progress on disinflation stalls,” economists at Barclays led by Marc Giannoni said.

Fed officials agreed at their last policy meeting that they would proceed “carefully” and raise interest rates only if progress in controlling inflation faltered, the minutes of the Oct. 31-Nov. 1 gathering showed on Tuesday.

While several Wall Street banks already signaled the Fed’s likely halt in rate hikes, Barclays had decided to stand apart, maintaining its outlook of another rate increase in January 2024 – until this shift in stance.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 76,278.44 1.12%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,924.90 4.73%
tether
Tether (USDT) $ 1.00 0.13%
solana
Solana (SOL) $ 200.09 6.23%
bnb
BNB (BNB) $ 606.43 1.42%
usd-coin
USDC (USDC) $ 1.00 0.14%
xrp
XRP (XRP) $ 0.557372 2.80%
dogecoin
Dogecoin (DOGE) $ 0.195367 2.65%
staked-ether
Lido Staked Ether (STETH) $ 2,926.35 4.95%
cardano
Cardano (ADA) $ 0.417792 13.85%
tron
TRON (TRX) $ 0.160909 0.54%
the-open-network
Toncoin (TON) $ 4.97 3.16%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,465.39 6.53%
avalanche-2
Avalanche (AVAX) $ 27.93 1.75%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 0.17%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 76,262.43 1.14%
weth
WETH (WETH) $ 2,925.56 4.75%
chainlink
Chainlink (LINK) $ 12.79 3.89%
bitcoin-cash
Bitcoin Cash (BCH) $ 382.67 0.27%
sui
Sui (SUI) $ 2.34 1.52%
polkadot
Polkadot (DOT) $ 4.20 1.71%
leo-token
LEO Token (LEO) $ 6.26 0.64%
usds
USDS (USDS) $ 1.00 1.12%
litecoin
Litecoin (LTC) $ 72.58 1.25%
uniswap
Uniswap (UNI) $ 8.92 4.89%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,074.77 4.72%
near
NEAR Protocol (NEAR) $ 4.34 1.69%
aptos
Aptos (APT) $ 9.85 2.10%
pepe
Pepe (PEPE) $ 0.000011 7.68%
bittensor
Bittensor (TAO) $ 515.76 3.22%
internet-computer
Internet Computer (ICP) $ 7.89 1.02%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.43 0.82%
dai
Dai (DAI) $ 1.00 0.25%
stellar
Stellar (XLM) $ 0.10239 5.14%
ethereum-classic
Ethereum Classic (ETC) $ 20.23 0.12%
monero
Monero (XMR) $ 163.32 1.24%
kaspa
Kaspa (KAS) $ 0.116019 4.16%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.14%
whitebit
WhiteBIT Coin (WBT) $ 19.71 2.10%
aave
Aave (AAVE) $ 182.32 0.45%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.348659 3.14%
blockstack
Stacks (STX) $ 1.70 0.95%
crypto-com-chain
Cronos (CRO) $ 0.093039 7.31%
dogwifcoin
dogwifhat (WIF) $ 2.47 1.83%
okb
OKB (OKB) $ 40.55 2.32%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.45%
arbitrum
Arbitrum (ARB) $ 0.585983 4.36%
filecoin
Filecoin (FIL) $ 3.79 1.29%
mantle
Mantle (MNT) $ 0.662493 8.75%